India, Brazil sign mining pact as Modi targets $20 billion trade in five years

2026-02-21 16:46:20

Summary
Agreement to help India meet growth in domestic steel demand
Brazil among the world’s top producers of iron ore
Closer ties to boost India’s access to raw materials, govt says

NEW DELHI, Feb 21 (Reuters) - India moved to deepen trade ties with Brazil on Saturday, signing a pact to expand cooperation in mining and minerals as it seeks to meet rising domestic steel demand and support capacity expansion amid a global race for raw materials.

The agreement was signed in the presence of India’s Prime Minister Narendra Modi and Brazilian President Luiz Inacio Lula da Silva, who arrived in New Delhi earlier this week for a three-day visit.

The Reuters Inside Track newsletter is your essential guide to the biggest events in global sport. Sign up here.

Brazil is among the world’s top producers of iron ore and holds large reserves of minerals critical to steelmaking. Closer cooperation is expected to improve India’s access to raw materials and technologies needed to sustain long-term growth in its steel sector, an Indian government statement said.

INFRASTRUCTURE INVESTMENT

The cooperation will focus on attracting investment in exploration, mining and steel sector infrastructure, the statement said.

India has steelmaking capacity of 218 million metric tons, and companies are expanding output to meet rising domestic demand driven by infrastructure development and industrialisation.

Addressing a meeting with a Brazilian delegation led by Lula, Modi said their talks had focused on ways to deepen the India-Brazil trade partnership.

“We are committed to taking bilateral trade much beyond $20 billion in the next five years,” Modi said.

Bilateral trade between the two countries currently stands at about $15 billion.

“Our nations will also work closely in areas such as technology, innovation, digital public infrastructure, AI, semiconductors and more,” Modi said.

LARGEST TRADING PARTNER IN LATIN AMERICA

India and Brazil have been strategic partners since 2006, with cooperation spanning trade, defence, energy, agriculture, health, critical minerals, technology and digital infrastructure.

Brazil is India’s largest trading partner in the Latin America and Caribbean region, and the two countries work closely on global issues such as U.N. reform, climate change and counter-terrorism.

Lula on Thursday advocated for Brazil and India to conduct trade in their own currencies rather than settling transactions in U.S. dollars, but dismissed speculation that the BRICS group of countries, of which both nations are members, would create a common currency.

Reporting by Manoj Kumar and Mayank Bhardwaj; Editing by Jan Harvey

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Suggested Topics:
Emerging Markets

X
Facebook
Linkedin
Email
Link

Purchase Licensing Rights

Manoj Kumar

Thomson Reuters

Manoj Kumar is a Senior Economics Correspondent based in New Delhi. He covers macroeconomy with a focus on India’s economic policies for manufacturing, trade and the rural economy. He has written on a broad range of topics including India’s annual budgets, taxation, inflation, youth unemployment, protests and the impact of government policies on people. Previously, he worked with the PTI news agency and The Tribune newspaper covering ministries of finance, commerce & industry, and petroleum besides parliament.

Mayank Bhardwaj

Thomson Reuters

Mayank Bhardwaj leads Thomson Reuters’ team of commodities and energy reporters in India, overseeing the reportage of oil, gas, petrochemicals, metals, mining, minerals, and agricultural goods. Having cut his teeth in news agency journalism, Mayank initially covered companies before branching out into the opaque world of commodities reporting. He has extensively reported on India’s emergence as a leading consumer of a wide range of goods. His deeply reported piece on Monsanto’s long-running battle with the Indian government earned him awards.

Email
X
Instagram

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.